In a significant move to bolster India’s export capabilities, the Reserve Bank of India (RBI) has relaxed norms to facilitate exports through warehouses in ‘Bharat Mart’, a multimodal logistics network-based marketplace in the United Arab Emirates (UAE). This initiative aims to provide Indian traders, exporters, and manufacturers with enhanced access to global markets.Business & Finance News+1Business & Finance News+1
According to a circular issued by the RBI, banks are now permitted to allow exporters to realize and repatriate the full export value of goods exported to ‘Bharat Mart’ within nine months from the date of sale of the goods from the warehouse. This adjustment aligns the repatriation timeline with standard export norms, offering greater flexibility to exporters. Business & Finance News+2Business & Finance News+2Business & Finance News+2
Furthermore, banks have been instructed to permit Indian exporters with a valid Importer Exporter Code (IEC) to open or hire warehouses in ‘Bharat Mart’ without any pre-conditions. This facilitation is contingent upon banks verifying the reasonableness of the arrangement. Additionally, banks may allow remittances by Indian exporters for both initial and recurring expenses related to the setup and ongoing operations of their offices in ‘Bharat Mart’. Business & Finance News+2Business & Finance News+2Business & Finance News+2Business & Finance News+4Business & Finance News+4Business & Finance News+4
‘Bharat Mart’ is envisioned as a strategic platform to enhance India’s trade footprint in the Middle East and beyond, serving as a hub for Indian goods and services. The RBI’s relaxations are expected to streamline export processes, reduce logistical challenges, and promote India’s export growth.
Source (full link):
https://www.business-standard.com/finance/news/rbi-provides-export-relaxations-through-warehouses-in-bharat-mart-in-uae-125042301316_1.html
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